India issues rooftop solar subsidy guidelines under PM-Surya Ghar scheme

The Ministry of New and Renewable Energy (MNRE) has released operational guidelines for the Central Financial Assistance (CFA) component of the PM-Surya Ghar: Muft Bijli Yojana. Approved by the Union Cabinet in February 2024, the scheme has a total financial outlay of ₹75,021 crore and aims to install rooftop solar systems in 10 million residential households in India by the 2026–27 fiscal year.

Under the standard subsidy structure, households can receive ₹30,000 per kW for the first 2 kW of capacity and ₹18,000 for an additional 1 kW, capping the maximum subsidy at ₹78,000 for a 3 kW system. Higher subsidy rates are designated for special category states and Union Territories, including North-Eastern states, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands, and Lakshadweep.

The program is expected to generate approximately 1,000 billion units of green electricity over 25 years and reduce carbon emissions by roughly 720 million tonnes. The guidelines specify that residential subsidies apply only to the capital expenditure model, where consumers initially finance the installation.